Cowen expects Chevron shares’ outperformance to continue. In addition to the reasons above, Chevron is increasing exposure to growing emerging Asia via three major liquefied natural gas projects. It also doesn’t hurt that it holds $10 billion in net cash and its dividend yield is an “attractive” 3%, the analysts said.

Analysts at Tudor Pickering Holt said they also prefer Chevron to Exxon for roughly the same reasons, but they like European integrated oil and gas firms “even better” on their cheaper stock multiples, they said, citing Anglo-Dutch Shell and France’s Total SA.
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For them, the sticky point for Chevron will be the “heavy” capital expenses needed through 2015 to get some of the mega-projects outlined on Tuesday off the ground.

Chevron is not about to spin off its refining, retail and marketing like ConocoPhillips did, but its downstream business is more streamlined, with a more profitable asset base, after a three-year restructuring, analysts at Raymond James said.

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